Palmers Island NSW Property Investment
Clarence Valley · 2463 · Score: 54/100 · Hold
Palmers Island Short-Term Rental (Airbnb) Market
Palmers Island NSW Investment Brief
HOLD — 3.3% gross yield on a $880,941 (single source — OnTheHouse only, no peer to validate) median.
THE MARKET
Palmers Island has compounded at 4.9%/yr over 5 years. Median sits in the $880,941 (single source — OnTheHouse only, no peer to validate) band today. Properties are sitting on market for 38 days (roughly balanced conditions).
- Median house: $880,941 (single source — OnTheHouse only, no peer to validate) | Units: $426,987
- Gross yield: 3.3% | Net yield: 1.8%
- 5yr price CAGR: 4.9%/yr | 3yr forecast: 13.5%/yr
- Population: 482 | Owner-occupier rate: 77% | Affluence: Below Average
- Supply pipeline: Low — Price growth outpacing new supply, limited development pipeline
RENTAL SNAPSHOT
- Vacancy: 3.0% (stable) | Rental demand: Moderate
- Median weekly rent: $560/wk | Days on market: 38 (stable)
- Tenant market — vacancy elevated, negotiate hard on rent.
SHORT-TERM RENTAL
Insufficient STR data for this suburb. Run a specific address analysis for property-level STR projections.
INFRASTRUCTURE & CATALYSTS
- No major confirmed infrastructure projects on record.
- Transport: Standard suburban transport access
BULL CASE
If Palmers Island maintains 3%+ annual growth and vacancy stays below 2.1%, median prices could reach $1,013,082 within 3 years with yields compressing slightly as capital values rise.
BEAR CASE
A market correction or interest rate shock could see prices in Palmers Island pull back 10-15% from $880,941, with vacancy rising to 5.0% and rental yields softening as tenants gain leverage.
KEY RISKS
- Distance from CBD may limit long-term capital growth potential
COMPARABLE MARKETS
- Lake Illawarra (NSW): $982,570 median, 3.4% yield, 10.6% 1yr growth
- Kinchela (NSW): $776,000 median, 3.2% yield, -0.5% 1yr growth
- Hat Head (NSW): $678,789 median, 3.6% yield, 37.5% 1yr growth
THE PLAY
Palmers Island offers balanced fundamentals but does not present an urgent buying signal. The market is in a recovery phase with moderate vacancy risk. Monitor vacancy trends and price movements over the next 6-12 months. Only enter if a property can be acquired at or below median pricing with yields exceeding 4.0%.
- Entry range: $792,847 – $969,035
- Minimum gross yield to target: 4.5%
- Watch signal: vacancy dropping below 2% and days on market falling below 35
This analysis is for informational purposes only and does not constitute financial, legal, or investment advice. Seek professional advice before making investment decisions.
Gentrification Index
Growth Forecast
high confidenceBasis: 5yr CAGR 4.9% + 10yr CAGR 10.8%
- +Above-average population growth (1.9%/yr)
- −High supply pipeline (1378 new approvals) — may cap price growth
Suburb Metric Thresholds
Macro Environment
Macro Indicators
Cash Rate
4.35%
▲ 0.25%Cash rate as at 2026-05-06 · Credit data 2026-04
Suburb Supply & Demand
Suburb Supply Pipeline — New Dwelling Approvals
144
2020
239
2021
364
2022
313
2023
318
2025
New dwelling approvals — higher numbers mean more future supply
Socio-Economic Profile
Source: ABS Census 2021SEIFA Index · Postcode 2463
Decile 3 of 10 — High disadvantage
Population
8,304
Education (IEO)
3/10
Econ. Resources (IER)
5/10
10-Year Investment Projection
Modelled on Palmers Island NSW data — rent, capital growth, tax, and depreciation over 10 years.
Pre-filled: $560/wk median rent for Palmers Island. Capital growth and rent increase are editable assumptions.
Schools
In your catchment
These are the government-school zones containing this suburb centroid. Specific addresses within the suburb may fall in different catchments — confirm with the school directly.
Nearby Suburbs
Analyse a Property in Palmers Island
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Analyse a Property →Data sourced from ABS, state government property sales, and Airbnb market analytics. For informational purposes only — not financial advice.